Business News Round Up (03/03/2022)
New strategy for economic growth in Scotland
The Scottish government has drawn up a new strategy for economic growth by promoting investment, start-up business ventures and new green industries. It includes an investor panel led by the first minister, more support for entrepreneurs and better infrastructure to boost productivity across Scotland. Finance Secretary Kate Forbes said the government would have a “ruthless focus on delivery” of the plans. However, trade unions swiftly dismissed the strategy as a “missed opportunity”. The Scottish Trade Union Congress said the paper included a “sprinkling of good ideas” but warned it could fail to deliver real changes. Ms Forbes, who launched the National Strategy for Economic Transformation at the Michelin Innovation Parc in Dundee, said the goal was to “deliver economic growth that significantly outperforms the last decade”. She said the blueprint “marks a step change in how we approach the economy”, and that it would help to deliver the best economic performance possible under the current constitutional settlement. The paper sets out five key policy programmes, including a drive to boost inward investment in Scotland.
https://www.bbc.co.uk/news/uk-scotland-scotland-politics-60571073
North West a key region for hotel investment activity in 2021
The North West of England recorded more than £300m of hotel transactions in 2021, from some 23 deals and was ranked as the third most liquid region in the UK, excluding London. According to the latest UK Hotel Capital Markets: Investment Review 2022 from global property adviser Knight Frank, Manchester accounted for 73% of this regional activity with seven hotels transacting including the 338-bedroom Macdonald Manchester Hotel sold to Zetland Capital Partners and Tristan Capital partners’ EPISO 5 Fund acquiring the Qbic Hotel Manchester, since rebranded as Yotel Manchester Deansgate. Liverpool, meanwhile, attracted a further 18% of the transaction volume in the North West, totalling more than £53m of investment, with three deals transacting. The most significant deal involved the first regional forward funding agreement since the start of the pandemic, with Aviva Investors providing funding to Valorem Investment Partners for the 260-bedroom, four-star Maldron Hotel, pre-let to Irish operator Dalata on a 35-year, inflation linked lease. This level of investment activity reflects the strong and growing investor confidence in regional UK hotels and further demonstrates investors’ flight to prime, gateway cities, with long term appeal, a wide base of international and domestic guests and a more balanced segmentation mix.
New £3m investment fund will help green business growth across Scotland
Crown Estate Scotland has today launched a capital investment fund to help promote the sustainable development of Scotland’s natural resources. The £3m Innovation with Natural Resources (INR) Fund will support innovation in a wide range of sectors, such as agriculture, green energy, aquaculture, and waste reduction. It is one of three Capital Investment Challenge Funds launched by Crown Estate Scotland over the past 12 months. Two other funds – one to help grow boat-based tourism and the other to support local partnerships via business diversification, community regeneration, and sustainable development – were launched in 2021 and the first successful applicants will be notified in the coming months. The INR Fund is designed to support innovative projects which result in better use of natural resources by existing or new businesses on the Scottish Crown Estate and which contribute to sustainable growth. Successful applicants could receive investment to fund the construction of new, energy efficient buildings, or the improvement of existing infrastructure. Other qualifying projects might include efforts to improve biodiversity or reduce the carbon footprint of a business.
GC Business Finance and MSIF secures £5m funding from NPIF
GC Business Finance and MSIF have secured £5m in additional funding from the Northern Powerhouse Investment Fund (NPIF). The funding will allow them to continue providing loans from the NPIF – BFS & MSIF Microfinance Fund across the North West. The NPIF – BFS & MSIF Microfinance Fund provides loans of between £25,000 and £100,000 to businesses in the North West that have been unable to obtain some or all of the finance they need from traditional lenders. Eligible businesses can use the loans for a wide range of growth and development purposes including filling gaps in working capital, funding expansion projects, leasing commercial premises and asset acquisitions. Businesses can apply for microfinance loans over terms of up to five years. As part of the Growth Company, GC Business Finance will also offer an inclusive package of wider support services to SMEs alongside the loans, helping entrepreneurs to start or grow their businesses. Meanwhile MSIF regularly refers businesses into Growth Platform and the Local Growth Hubs to access business support locally.